The week starts with fickle market movements and the ongoing international diplomacy traffic.
While, on the one hand, America delegation holds talks with Turkish Government, on the other hand, it is both sad and striking to see Turkish Armed Forces are carrying out fight against terrorism with American-made weapons.
Although the US said, regarding yesterday’s talks, “We will work together to expand the fight against terrorism”, Turkey had the last word, “Do not test our patience anymore…”
The weird thing is that Trump administration representatives and Pentagon are doing and saying completely different things, which shows that Trump has no influence over the Pentagon whatsoever, quite probably, like Obama did not either. That’s the only conclusion you can draw given the fact that the US does not pay any attention to Turkey’s, a country that is recognised as a “strategic partner” by the White House, red lines in terms military respect. So, it looks like from now on Turkey will have to be more careful about its relations with White House-CIA-Pentagon trio.
“Market bubble is about to crash…”
USD/TRY hits a level of 3,81 percent today. The reason why exchange rates went too high last Friday afternoon was because they were triggered by some market rumours in the first place as well as the fact that US 10-year bond yields have constantly kept going up. This is a development that should not be taken lightly considering international investors say, “We hesitate too much even when we’re buying US long-term securities. In such case, investors usually go for short-term instruments when they do not want to tie the money up in long-term instruments. The fact that benchmark rate starts to rise again in Turkey is a proof of this particular trend, which naturally reflects on stock markets as well. It is obvious that there’s a certain sales pressure but incoming purchases, although not as much strong after the latest readjustments, are trying to hold the indexes tight together. I think this trend been quite healthy in terms of helping the pricing turn back to normal, which has been exhibiting bubble-like characteristics since Trump took office.
If this movement, however, loses its balance again, then we’ll have to make a new analysis.